Bank Of America Sees Digital Trending Upward For Coupons.com

In a report published Friday, Bank of America analyst Nat Schindler reiterated a Buy rating and $30.00 price target on

. In the report, Bank of America noted, “NCH Marketing Services, a subsidiary of the Valassis group, released its 2014 midyear couponing report offering an updated view on the coupon industry. Key takeaways from the report were: 1) digital coupon growth continues to outpace other coupon categories with distribution volume up 31% y/y; 2) digital coupon redemptions are up at 15.0% on average for print at home and down slightly at 8.3% for digital paperless coupons compared to average redemption rate of 0.6% for free standing inserts (FSI); 3) drug stores and discount/warehouse clubs saw the largest increase in redemption volume at 9.2% and 23.7% respectively; 4) a total of 1.45 billion coupons have been redeemed year to date, up 1.8% from 1.425 billion in 1H13; and 5) total digital coupons (print at home, paperless, blended) are 12% of total redemptions vs 49% for FSI.” Coupons.com closed on Thursday at $13.96.